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Highlights of JAT Capital’s Fourth-Quarter 13F Positions

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 JAT Capital Management overview

Founded in 2007 by John Thaler, JAT Capital Management primarily invests in the technology, media, and gaming sectors. The long-short fund approaches its investments in a private-equity-like fashion by having a long-term perspective and working with management teams.

During 4Q14, the fund experienced a substantial decline in value of its US long portfolio as it dropped by more than 50% to $2.6 billion from $6.0 billion in 3Q14.

In this series, we’ll review some of JAT Capital’s top 4Q14 positions.

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Much of JAT’s US long portfolio decline was due to the liquidation of stakes in Activision Blizzard (ATVI), Comcast (CMCSA),  and Hertz Global Holdings, among others. Reduced positions in CBS Corporation (CBS), Facebook (FB), Twitter (TWTR), Stratasys (SSYS), and several other companies also impacted the fund.

Thaler’s tech-centric fund

Companies belonging to the technology sector represented over 50% of the fund’s US long portfolio. Top positions in the tech sector included Apple (AAPL), Yahoo (YHOO), Google (GOOGL), Twitter, LinkedIn (LNKD), Facebook (FB), and Alliance Data Systems (ADS). ETF investors seeking exposure to these firms should consider the Technology Select Sector SPDR Fund (XLK) and the iShares Dow Jones US Technology ETF (IYW). XLK’s top position is in Apple, which has a stock weighting of 18.1%.

In the next part of this series, we will discuss JAT Capital’s new position in Alliance Data Systems (ADS).

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